CANADA FX DEBT-C$ slightly weaker after U.S., Canada trade data
* Canadian dollar at C$1.3082, or 76.44 U.S. cents * Bond prices flat to lower across the maturity curve TORONTO, Nov 4 (Reuters) - The Canadian dollar weakened slightly against the U.S. dollar on Wednesday, as the greenback broadly rose after data showed the U.S. trade deficit narrowed to its lowest level in seven months in September. Canada's trade gap also narrowed more than expected, to C$1.73 billion, helped by a modest pick up in exports including consumer goods and energy products. We are "maybe starting to see the dynamic of stronger U.S. growth and a weaker Canadian dollar starting to boost trade in Canada," said Benjamin Reitzes, senior economist at BMO Capital Markets. He noted that "non-energy export volumes were up just a little bit on the month, there's still some work to be done there, but the trend appears to be higher after the weak spate we had pretty much the first half of the year." * At 8:46 a.m. ET (1346 GMT), the Canadian dollar was trading at C$1.3082 to the greenback, or 76.44 U.S. cents, weaker than Tuesday's official close of C$1.3052, or 76.62 U.S. cents. That close was the currency's strongest finish in two weeks. * Canadian government bond prices were flat to lower across the maturity curve, with the two-year price flat to yield 0.6 percent and the benchmark 10-year falling 10 Canadian cents to yield 1.626 percent. * The Canada-U.S. two-year bond spread was -18.3 basis points, while the 10-year spread was -59.2 basis points. (Reporting by Alastair Sharp and Fergal Smith Editing by W Simon)
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